The deepening ties between Pakistan and Iran, marked by their renewed commitment to the gas pipeline project and boosting trade, have raised concerns for the US over potential sanctions risks
The United States issued a warning on Tuesday (April 23, 2024, local time) regarding potential sanctions risks for Pakistan after the Pakistani government inked security and economic agreements with Iran during Iranian President Ebrahim Raisi‘s visit to Pakistan.
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These warnings came as the US imposed sanctions last week on suppliers to Pakistan’s ballistic missile program, including four entities based in China and Belarus. Patel affirmed that the US will continue to ‘disrupt’ and take action against proliferation networks and weapons of mass destruction.
“We advise any party considering business dealings with Iran to be cognizant of the potential risk of sanctions. Ultimately, the Government of Pakistan can explain their own foreign policy pursuits.”
– Vedant Patel, Spokesperson For The U.S. State Department
Pakistan has sought to revive a long-delayed project to construct a gas pipeline from Iran, which has been stalled for decades due to the risk of U.S. sanctions. Last month, Assistant Secretary of State Donald Lu stated during a congressional hearing that the Biden administration will uphold all sanctions related to Iran when questioned about the Pakistan-Iran pipeline.
Pakistan plans to request a sanctions waiver for the pipeline project. In a joint statement released on Wednesday (April 24, 2024, local time) after Raisi departed from Pakistan, both countries agreed on the ‘importance of cooperation in the energy domain’, including the gas pipeline project.
Why Does the US Warn Pakistan of Sanctions?
The United States has warned Pakistan of potential sanctions due to concerns over entities involved in the proliferation of weapons of mass destruction and their delivery systems. The reason cited for this warning is that certain entities based in China (PRC) and Belarus have been witnessed supplying equipment and other items to Pakistan’s ballistic missile program.
Specifically, the Belarus-based Minsk Wheel Tractor Plant is one of the entities that has worked to provide special vehicle chassis for Pakistan’s long-range ballistic missile program. The United States considers these activities to be contributing to the proliferation of weapons of mass destruction and their delivery means, which is the underlying reason for the warning of potential sanctions against Pakistan.
The United States imposed multiple sanctions on Iran in 1979 in response to its nuclear program. Additionally, the Pentagon had also penalized Iran for its support for Hezbollah, Hamas, and Palestine Islamic Jihad, which are considered terrorist organizations by the United States.
It is worth noting that Iran and Pakistan signed a multi-billion-dollar agreement to build a gas pipeline in June 2009. While Iran had completed the installation of a 900 km pipeline on its side by 2011, Pakistan is yet to finish the project of installing the remaining 80 km on its side. After missing multiple deadlines, an annoyed Iran had warned to drag Pakistan to an international court and also threatened to impose a fine of $18 billion. Although Pakistan has recently pledged to finish the project by September this year, it is unlikely that Islamabad will complete it, as it fears potential US sanctions, which was one of its earlier excuses for the delays.
Pakistan-Iran Bilateral Ties
Pakistan is aiming to revive a long-standing project to build a gas pipeline from Iran. During President Ebrahim Raisi’s three-day visit to Pakistan, eight bilateral agreements were signed, including the establishment of a joint special economic zone with Islamabad. The two nations discussed their vision for advancing political, economic, trade, and cultural ties, according to reports.
The accords covered areas such as cooperation in veterinary and animal health, judicial support in civil cases, and security matters.
In an official statement, Pakistan’s Interior Ministry said both leaders agreed in principle to prohibit terrorist organizations from operating within each other’s borders and to collaborate on counterterrorism initiatives.
Raisi emphasized that Pakistan and Iran must increase their bilateral trade to around $10 billion in the next three to four years. Ebrahim Raisi is the first Iranian president to visit Islamabad in eight years.
What Did Say Pakistan-Iran?
Iranian President Ebrahim Raisi emphasized the strong historical ties between Iran and Pakistan, stating that ‘no power on Earth can affect’ this longstanding relationship. Raisi’s remarks came hours after the United States cautioned Pakistan about potential sanctions if it engages in business dealings with Tehran.
The Iranian President referred to the newly agreed commitment between the two nations to boost their annual trade volume to $10 billion over the next five years, describing it as the ‘best opportunity’ to strengthen ties across various sectors, as reported by Dawn on Wednesday.
On the Pakistani side, the Foreign Office announced that ‘productive discussions’ took place between Pakistan and Iran during Raisi’s three-day official visit to the country, which has now concluded.
In Conclusion, the deepening ties between Pakistan and Iran, marked by their renewed commitment to the gas pipeline project and boosting trade, have raised concerns for the U.S. over potential sanctions risks. As both nations navigate their complex relationship amidst U.S. warnings, the future trajectory of this dynamic remains uncertain, with potential implications for regional stability and global non-proliferation efforts.
